Top 10 Reasons To Purchase an Indexed Annuity:
10. I trust insurance carriers more than I trust banks.
- From March 2008 to Present, 465 Banks in the US failed.1
- From March 2008 to Present, 0 Insurance carriers failed (3 entered receivership)
9. I want the money to go to my family if I die.
- Indexed annuities pay the full accumulation value upon death of the annuitant.
- Properly designated beneficiaries ensure that annuities will not have to go through probate.
8. I want the benefits of triple compounding.
- Earning interest on my contributions, earning interest on my interest, earning interest on the money that I would have paid in taxes. 2
7. I want access to my money.
- After the first policy year, you may withdraw up to 10% of your accumulation value without application of withdrawal charges.3
- Annuitization without a life payout.
- No penalties from insurance carrier in the event of nursing home confinement or terminal illness. I In approved States, subject to rider limitations.)
6. I want an income stream, regardless of how long I live.
- Lifetime Income Riders offer protection against outliving savings.
5. I need to supplement my Social Security payments.
- Currently, Social Security benefits are only intended to provide for 40% of retirement income — future benefits will likely provide for less.4
4. The power of the annual reset.
- Interest locked into accumulation value annually.
- Provide opportunity when the index is up and protection when the index is down.
- Zero is my Hero — an indexed annuity with annual interest may earn 0% interest in a year, but never a negative amount. Because of the annual reset, the index does not have to make-up value from a down year. The index’s year-end value becomes the year-start value.
3. Time my annual issue dates.
- Market timing is not necessary on indexed annuities
2. I want the ability to outpace other fixed money products.
- Indexed annuity rates have the potential to be considerably higher than secure/conservative investment options like Savings bonds, Savings account, Certificates of Deposit (CDs), and Checking accounts.
1. I am risk averse
- I am looking to save money for retirement
- I am not comfortable losing money
- Annuities offer guaranteed5 safety of principal and guaranteed minimum return
1 Source—FDIC Failed Bank List
2 Taxes are paid at the time of withdrawal
3 Subject to IRS qualified plan guidelines. Withdrawals prior to age 59 ½ may be subject to IRS 10% early distribution penalty.
4 Source—Social Security Bulletin, Vol. 65, No. 3
5 Guarantees are based on the claims-paying ability of the issuing companies.